The goal of a successful company is to maintain a high-performance rate at all levels: from a specific employee to hierarchical divisions and integration into the national market. To do this, it is necessary to calculate the current dynamics of the company’s performance and positively influence it. Accordingly, one needs to know how to determine the appropriate levels of productivity and by what indicators to view it in order to subsequently optimize the workflow more efficiently. A company’s overall performance can be improved by reducing productivity variation between its subforms within particular sectors and industries. For example, lagging branches can adopt the experience and technologies of the leading ones, and the leaders can try expanding into new market spheres. In general, performance levels for every branch should be adjusted to their respective market areas and developed according to the specifics of the state they are in.
U.S. Operations
The U.S. branch of Hi-Pro Performance Fly Rods has presented 126% of the acceptable upper limit of manufacturing performance. It may be an indicator that the American manufacturer is compensating for the lowered performance of the other two branches – Argentinian and New Zealandian. The company’s manufacturing productivity rising to the quarter above its recommended highest level can pose significant problems for the whole enterprise. Mainly due to the increased deterioration of the manufacturing equipment, as well as the rising demand for materials. It is clear that the costs of materials required for rods production could have risen, as the demand undoubtedly outnumbered supply, creating an artificial deficit in the company. Additionally, the expenses associated with the workforce must have risen, as well – an increased production would demand more work hours or more workers. All in all, such a rapid rise in manufacturing performance must be rather exhausting for the company, as it poses significant internal problems and risks.
To provide a sufficient solution, several aspects of the issue must be analyzed. First of all, one needs to determine what caused the American branch to override its maximum manufacturing limits. According to the Grand View Research (2019) report, North America remains the largest market for fishing rods in the world, providing almost half of global revenue in 2018. Thus, it is clear that the demand is rather high for the U.S. branch, and it might point to insufficient supply, causing the company to overcome its manufacturing limits. A detailed approach is required to remedy the current situation: the company needs to carefully analyze its market position, adjust its potential limits, and address the issue of growing demand. It could be useful to expand the branch by buying new and upgrading already existing equipment, hiring an additional workforce, and establishing new supply lines.
Argentina Operations
The company’s branch in Argentina is currently showing less than promising manufacturing performance results of 33% of the acceptable lower limit. As opposed to the U.S. branch’s situation, there might be many various causes of such low performance. Thus, a comprehensive analysis of the company’s processes should be performed to determine the exact issue that affects the branch’s performance so much. However, one can suggest several most common possible problems and solutions for them.
The organizational structure of the branch might be too complicated to provide efficient working progress. Perhaps, there is an abundance of cross-functional barriers that hinder the interaction between brigades, sections, and workshops. The basis for the solution of this issue should be the introduction of a process approach to managing the plant. First of all, it is necessary to determine and optimize the key processes of the enterprise. A working group of experts should be formed who could objectively assess the situation and pinpoint problem areas. For example, a possible hindering factor is that active administration of production was constantly required, while at the same time, the branch lacked a process approach. In particular, the enterprise might not even clearly define the head of the order fulfillment business process and the employees responsible for its subprocesses – from signing the specification to shipment, including financing and purchasing materials. This could have given rise to the dependence of management on the personal qualities of leaders, an authoritarian style, and voluntarism.
To solve these problems, the managing lead should provide a set of measures to bring the enterprise out of the crisis. It can include the definition and regulation of business processes for organizing production, optimizing the organizational structure of the plant and strengthening interdepartmental communication. A production planning system should be introduced, changing wage schemes based on process indicators and creating an effective manufactory model of the enterprise.
New Zealand Operations
The third branch of Hi-Pro Performance Fly Rods, based in New Zealand, showed 110% of its acceptable lower performance limit, placing itself in between the American and Argentinian branches. Seeing as this result is closer to the low-performance level rather than normal, it indicates that there are, indeed, issues with the branch’s productivity. However, it must be noted that, as the company managed to maintain its manufacturing process above the lower limit, the problems associated with it must not be as dire as in the Argentinian branch.
In this case, the first area of analysis would be the enterprise’s overall organization. Such low manufacturing can point to the inefficient organization of labor and workplaces, supporting and auxiliary processes, which could be accompanied by unreasonably inflated and unbalanced staffing levels for all categories of personnel. The solution for this issue would call for a complete overhaul of the organizational processes of the enterprise in adherence with found problems and issues.
Insufficient informatization and automation of production and management and a low level of use of high technologies are another possible aspect that would require attention. Mainly due to the fact that, if left unchecked, it can result in inefficient methods and means of production, labor and management – as is seen in the New Zealand example. Dušková (2021) states that “KET (key-enabling technologies)-performing companies put a huge emphasis at technological aspects related to R&D activities” (p. 24). To alleviate this problem, the company would need to change its approach to the technological aspect of manufacturing, implementing more advanced equipment and providing specific training for the personnel.
Finally, low-performance management and, as a result, inefficient and unproductive business processes and unproductive personnel might pose a big issue for the New Zealand branch. If the managing lead of the organization is not familiar with the concepts of efficient management and the latest managing technologies, it cannot provide regular employees with effective solutions and necessary soft skills. This issue outlines the need for a significant increase and expansion of the competencies of managers and their innovative activity; the company would need to better train and educate the managing lead.
References
Dušková, M. (2021). Key Enabling Technologies and measuring of the company performance in relation to Sustainable Development: Evaluation Model Design. International Journal of Innovation and Sustainable Development, 15(1), 1–34.
Grand View Research. (2019). Fishing rods market size, share Industry Research report, 2019-2025. Fishing Rods Market Size, Share | Industry Research Report, 2019-2025.